Sat, Dec 16, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Commodity markets continue to offer investors value in February - Credit Suisse Asset Management

Thursday, March 10, 2011
Opalesque Industry Update - Commodity markets continued to increase in February despite mixed global macroeconomic conditions. Prices were supported by inflationary concerns and strong emerging markets demand amidst tight inventory levels for raw materials.

Nelson Louie, Global Head of Commodities at Credit Suisse Asset Management, said, “Uncertainty in the Middle East and North Africa remains high. The focus of the ever-changing situation shifted from Tunisia and Egypt to Libya. As a result, concerns that unrest would spread to oil-producing countries were materialized. As February came to a close, the situation in Libya remained uncertain and speculation continued as to how events there would unfold. This led to a sudden spike in oil prices late in the month, which weighed on equity markets, at least temporarily. It was not surprising to see a ‘flight to safety,’ with precious metals performing quite strongly.”

Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, “Fundamentals for many key commodities continue to improve due to a combination of strong demand and a variety of supply shocks, which have exacerbated already tight inventories and have helped to shrink limited excess capacity. Amidst this backdrop, we believe commodities are poised to serve investor portfolios well. We also believe investors will continue to benefit from the diversification benefits commodities provide.”

The Dow Jones-UBS Commodity Index Total Return rose 1.32% in February. Overall, 11 of the 19 index constituents increased in value. Despite negative performance in January, the Precious Metals sector was the strongest group in February, up 9.07% as a result of Silver’s stellar performance, gaining 19.97%. Precious metals increased as a result of renewed inflationary concerns. Similar to the previous month, Agriculture continued to do well, rising 0.95%, mostly as a result of Cotton’s gains in a tight inventory environment.

The Credit Suisse Total Commodity Return Strategy group periodically produces updates on relevant industry topics. For a copy of their white paper, “How Commodities Can Help Investors Face the Uncertainty of the Inflation/Deflation Debate”, please email ir.betastrategies@credit-suisse.com.

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Mediobanca acquires majority stakes in Swiss hedge fund[more]

    Komfie Manalo, Opalesque Asia: Listed diversified banking group Mediobanca SpA said it has acquired a majority stake in Geneva-based hedge fund firm RAM Active Investments SA (RAM AI), an active and alternative asset manager offering a range of act

  2. North America - Miami could attract hedge funds if SALT deductions axed[more]

    From Law360.com: For years, inertia has been Nitin Motwani's greatest foe in his attempts to lure hedge fund owners in the northeast to Miami, which he has pitched as a tropical low-tax paradise. But with the Republican tax bill proposing to eliminate deductions for state and local taxes, he's sensi

  3. Northleaf Capital Partners closes debut private credit fund on $670M[more]

    Bailey McCann, Opalesque New York: Northleaf Capital Partners has closed its debut private credit fund - Northleaf Private Credit I - on $670 million. The vehicle will invest in private credit transactions in Europe and North America, with a primary focus on lending to private equity-backed compa

  4. ...And Finally - The ongoing gun saga in the U.S.[more]

    From Newsoftheweird.com: As elder members of the First United Methodist Church in Tellico Plains, Tennessee, gathered on Nov. 16 to discuss the recent church shooting in Sutherland Springs, Texas, one of those present asked if anyone had brought a gun to church. One man spoke up and said he c

  5. Opalesque Exclusive: Credit Suisse Asset Management's NEXT Investors leads $6M Series A round for LUX Technology and Services[more]

    Bailey McCann, Opalesque New York: Credit Suisse Asset Management's NEXT Investors has led a $6 million Series A funding round for LUX Technology and Services, a business and technology solutions provider for the alternative assets industry. The investment will be used to fuel growth of Trans